Abstract
Many companies have rushed into Africa looking to capitalise on newly liberated
prospective consumers. However, these companies have quickly realised that the
local terrain is not as accommodating as that of other developing markets. South
Africa has thus remained as the gateway to doing business in Africa and this has
allowed South African companies to be in the best position to take advantage of the
developing markets.
Nigeria became the biggest economy in Africa, leap-frogging South Africa in 2013
after it announced a rebasing of the country’s Gross Domestic Product. South Africa
has the ability to regain its position as an African hegemon, considering its world
class financial systems and infrastructure. This study will focus on South African
retail companies’ internationalisation process in Nigeria, based on the recent shift of
economic dominance on the African continent.
Successful companies in emerging markets are those that have modified their
strategies to suit the local business environment without altering their values and
principles. South African investors thus need to use this opportunity to conduct
market research, risk assessments and analysis of competition as forms of market
entry.
This research concerns itself with the manner in which South African retail
companies enter new markets – specifically, the new modes of market entry in the
Nigerian retail market. Once established, South African companies need to survive
and grow their businesses in Nigeria. This research will determine the best practices
for South African retail companies in Nigeria. The research results may serve as a
guide for South African retail companies looking to conduct market entry into Nigeria.
A mixed method research approach was used, as it provided an in-depth
understanding of the modes of entry for retail companies in Nigeria. This approach
will aid the research in identifying a collection of techniques that fully obtain a
descriptive and epistemological base for South African retail professionals and
industry specialists in the Nigerian market...
M.Com. (Business Management)